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Disqualification of Directors

 

Banned from being a Company Director

Directors of companies may be come disqualified for a number of reasons.

Such reasons for disqualification might be:

  • They have failed to comply with the Companies Act 2006 requirement to keep appropriate accounting records. These records must accurately reflect the transactions the company has entered in to.
  • They have not met their obligations to Companies House under the 2006 act. All companies are required to submit annual accounts and file certain changes with the Registrar of Companies.
  • A failure to pay taxes which the company owes and, or submit the appropriate returns, for example, the annual CT 600 form.

Disqualified from Holding a Directorship

A person banned from holding a directorship must not serve in that capacity of a UK company until the time for which they are disqualified has lapsed or they have obtained special permission from the court.

In addition they must not form a company, or in any way directly or indirectly exert influence on another company director or act as if they, themselves are a company officer.

Breaching the Terms of Disqualification

In both cases where a person is disqualified as a company director or breaches the terms of their disqualification, they may face criminal prosecution resulting in a fine and, or a prison sentence.

A person who has been or is in the process of being disqualified from acting as a company director might wish to seek legal advice.

 
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